The Financial Accounting System
Businesses need to record transactons in the financial accounting system for practical purposes:
- To quantify items such as sales, expenses and profit.
- To present the accounts in a meaningful way so as to measure the success of the business.
- To provide information to the owner of the business and to other stakeholders(eg the bank manager, who may be providing a loan).
Source Documents - Sources of Accounting Information
Bank Paying-In Slip Counterfoils
Information from Bank Statements
Subsidary Books - Gathering…